Company Snapshot

Property:	Spanish Mountain Gold Project
Ownership:	100% Ownership
Symbol:	TSX.V: SPA | OTC: SPAZF
Location:	British Columbia, Canada
Share Structure:	Shares Issued & Outstanding: Fully Diluted:	370 Million 394 Million
Market Capital:	~ $80 Million
Management:	Peter Mah, CEO, Director Sharon Ng, CFO Raymond Mah, Project Director Doug Ramsey, Director, Sustainability and Indigenous Affairs
Board of Directors:	Brent Bergeron Don Coxe Garnet Dawson Lembit Janes Christopher Lattanzi Peter Mah Richard Orazietti

Spanish Mountain's current focus:

• Enhance project economics and resource with Targeted Studies and Resource Expansion. 

Highlights of PFS results

Current strategy prioritizes the development of the near-surface/ higher-grade multi-million ounce reserve as a standalone operation.  The PFS demonstrates a potential mining operation characterized by robust production profile, low operating cost and modest capital expenditures. The PFS assumes a gold price of US$ 1,600/oz and a silver price of US$ 24/oz.

The following information are excerpts from the Prefeasibility Study NI 43-101 Technical Report, effective date May 10, 2021. A copy can be found on SEDAR and on the Company’s website HERE

Project Economics

			Gold Price (USD)
		Units	$1,200	$1,400	$1,600*	$1,800	$2,000	$2,200	$2,400
Pre-Tax Economics
	NPV(5%)	C$M	$125	$486	$848	$1,209	$1,570	$1,931	$2,293
	IRR	%	9%	18%	25%	31%	36%	42%	47%
	Payback	Yrs	5.4	4.0	3.2	2.7	2.4	2.1	1.9
Post-tax Economics
	NPV(5%)	C$M	$129	$415	$655	$888	$1,119	$1,350	$1,580
	IRR	%	9%	16%	22%	27%	31%	36%	39%
	Payback	Yrs	5.5	4.0	3.3	2.8	2.5	2.2	2.0

* PFS Base Case

Reserve

The Project’s Mineral Reserves, which are a subset of the M&I Mineral Resources, are based on the mine plan developed for the PFS.  Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.

	Tonnage (Mt)	Au Grade (g/t)	Gold (Moz)	Ag Grade (g/t)	Silver (Moz)
Proven	40.8	0.79	1.03	0.67	0.88
Probable	55.1	0.74	1.31	0.74	1.31
Total P&P Reserve	95.9	0.76	2.34	0.71	2.19

 

Select Operational and Cost Metrics 

	Unit	LOM Avg.
Gold Grade	g/t	0.76
Annual Gold Production	Koz	150
Annual Silver Production	Koz	63
Cash Cost /oz	US$	$696
All-in-sustainable Cost/oz	US$	$801

 

Project life-of-mine Operating Costs

Mining Area	CAD $/t milled
Mining	10.80
Processing and G&A	7.67
Water treatment	0.47
Tailings and Water Management	0.17
Owner’s G&A	0.27
Total	19.38

 

Initial Capital Expenditures

Direct Costs	C$M
Overall Site	$26
Open Pit Mining	$73
Ore Handling	$34
Process	$125
Tailings and Water Management	$40
Environmental Monitoring	$2
On-site Infrastructures	$42
Off-site Infrastructures	$64
Water treatment Plant	$10
Total Direct Costs	$416
Project Indirects	$102
Owner's Costs	$14
Contingencies	$75
Total	$607

 

*See Cautionary Statement